Application System: Risks and Control Quiz

What is a common risk associated with application systems?

• Insufficient documentation for end users

• Lack of user authentication mechanisms

• Overabundance of data redundancy

• Data concentration leading to increased reliance on a single piece of data

What is a common risk associated with ERP Enterprise Resource Planning systems?

• Overemphasis on data decentralization

• Lack of integration with other IT systems

• Inadequate storage capacity for critical data

• Processing errors impacting multiple functions due to shared information

What is a preventative measure for erroneous data input in application systems?

• Increasing the number of data repositories

• Built-in application controls like check digits and double entry

• Allowing open access to all users for data modification

• Implementing weak information security measures

What is a potential risk of unauthorized remote access to application systems?

• Sensitive and confidential information being at risk

• Enhanced data accuracy and integrity

• Improved network performance

• Decreased user productivity

Why is insufficient documentation a risk for application systems?

• It hinders effective analysis of program changes and troubleshooting

• It increases data redundancy

• It enhances user understanding of the system

• It improves system maintainability

What is a common risk associated with inaccurate information in application systems?

• Excessive data accuracy leading to confusion

• Management failing to use information properly

• Lack of user access to information

• Overreliance on outdated data

How can organizations combat unauthorized remote access to application systems?

• Using encryption for user IDs and passwords transmitted over public lines

• Providing unrestricted access to all users

• Allowing unencrypted transmission of confidential data

• Avoiding user access reviews

What is a risk associated with incomplete processing in application systems?

• Transactions or files not being processed due to errors

• Inaccurate data input due to human error

• Excessive processing leading to system overload

• Timely processing of all transactions

Why is inaccurate or incomplete output a risk for application systems?

• It reduces the need for output controls

• It speeds up the distribution process

• It enhances data accuracy and completeness

• Output reports may contain errors compromising their integrity

What is a common risk associated with weak information security in application systems?

• Lack of consistent top priority for many organizations

• Increased management awareness of security risks

• Advanced technology reducing security vulnerabilities

• Lack of human resources and funds for security measures